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Comparison Between the Dutch GAAP and IFRS

Comparison Between the Dutch GAAP and IFRS

Updated on Friday 04th September 2015

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Financial reporting and accounting in the Netherlands

 
The Generally Accepted Accounting Standards in the Netherlands (GAAP) and the International Financial Reporting Standards (IFRS) are two different sets of financial reporting standards which are available to companies incorporated in the Netherlands. While the IFRS have gained more popularity over the years, the Dutch GAAP are the locally accepted accounting principles.
 
The differences between the Dutch GAAP and the IFRS can vary according to the type of company, the nature of the business, the industry and the accounting policies established by the company internally. Our Dutch accounting firm can provide complete accounting services in the Netherlands.
 

The Dutch Generally Accepted Accounting Standards

 
The Generally Accepted Accounting Standards in the Netherlands are based on a larger collection of laws, rules and regulations regarding the accounting process in the Netherlands. The Dutch GAAP includes the Dutch Civil Code and the Dutch Accounting Standards published by the Dutch Accounting Standards Board.  
The Dutch Civil Code is used for profit-oriented business entities in the Netherlands. Unlike the IFRS, the Guidelines on Annual Reporting from the Dutch Accounting Standards Board may be used by profit-oriented organizations as well as some not-for-profit organizations. Unlike the IFRS, the Dutch GAAP contains some exemptions for small and medium sized companies and different guidelines for annual reporting exist for small companies.

The International Financial Reporting Standards

The International Financial Reporting Standards (IFRS) are composed of the entire collection laws, rules and regulations issued by the International Accounting Standards Board (IASB). They are designed to be used by for-profit legal entities and unlike the Dutch GAAP they do not contain special standards or exemptions for small and medium sized companies in the Netherlands.
 
If compared to the Dutch GAAP, which can be regarded as a set of recommendations with less guidance for application, the IFRS are more prescriptive and in-depth. Our accounting firm in the Netherlands can provide detailed information about the main differences regarding the general requirements for financial statements, separate financial statements, the accounting method and many others.
 
Please contact our Dutch accounting firm if you need professional accounting services for your Dutch company, including audit services in the Netherlands.
 
 

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